Reference no: EM133040150

1. The Board of directors performs an important role in minimising agency conflicts.

• True
• False 

2. Which of the following statement is INCORRECT?

• Shareholders and managers do have an agency relationship
• An agency relationship is developed when the principal (owner) hires another party(agent) to perform some services on her behalf
• when there's conflict between shareholders and managers, it is called an agency problem 
• Shareholders are the real managers of a business

3. What framework can businesses use to guide them in preparing triple bottom line reports?

• GRI reporting framework
• Conceptual framework
• PPP framework
• TBL framework

4. The agency problems refers to.....

• The potential for managers of a company to act in their own interest, rather than in the interest of shareholders
• The reason owners should never hire outside help to manage their company
• The problem all start-ups face when they require outside funding 
• When angel investors decide to invest 

5. Owners of a business are part of a wider collective with an interest in the business known as:

• Stakeholders
• shareholders
• managers
• suppliers 

6. Stakeholders theory proposes:

• Noen of the options are correct
• the purpose of an entity is to work for the good of all stakeholder groups 
• The sole purpose of an entity is to earn the highest profits for its shareholders
• an entity's sole responsibility is to its shareholders and creditors 

7. What would be NOT part of a management accountants role?

• reporting sustainability performance
• internal control procedures
• preparing financial statement 
• analysing energy consumption cost